Selecting a contract lifecycle management (CLM) platform is not as simple as choosing the program with the flashiest features. Despite the vast buffet of benefits CLM software can offer to different departments, company representatives often walk into sales meetings not quite knowing what they need out of their CLM vendor to benefit the entire company. CLM vendors, on the other hand, are providing robust presentations on their programs’ capabilities without truly diving into their prospects’ needs and pain points. These approaches, unfortunately, can backfire for both enterprises and CLM vendors.

The Change Healthcare Operations, LLC v. iCertis, Inc. lawsuit filed in late 2021 is a clear illustration of the potential risks for both sides. The complaint states that Change Healthcare Operations (CHO) commissioned iCertis to create a bespoke, on-premises CLM program under a service contract worth more than $5 million. CHO alleges that over the course of the implementation, iCertis failed to make its employees available to CHO staff, and fell through on promises related to providing adequate documentation and training. Additionally, CHO claims that it needed to rework 75% of iCertis’s deliverables at substantial cost and overtake template harmonization and technical tasks that the service agreement had assigned to iCertis. Through its suit, CHO seeks cancellation of the contract and restitution.

Preparing for a Successful CLM Implementation